Virgin Orbit was founded in 2017. (Reuters Photo)
British billionaire Sir Richard Branson's company Virgin Orbit has filed for bankruptcy in the US after failing to secure new investment, as per a report in the BBC. The outlet said that the company halted operations weeks ago and is looking for a buyer. Virgin Orbit was established in 2017 and is a sister company of Mr Branson's Virgin Galactic. The company suffered a major setback earlier this year when an attempt to launch the first rocket into space from British soil ended in failure.
The company had organised the mission with the UK Space Agency and Cornwall Spaceport to launch nine satellites into space.
The California-based company said last week it was laying off 85 per cent of its employees - around 675 people - to reduce expenses due to its inability to secure sufficient funding.
Dan Hart, the chief executive officer (CEO) of Virgin Orbit, said they took "great efforts" to address the financial issues. "But we ultimately must do what is best for the business," he was quoted as saying by the BBC.
In a regulatory filing on Tuesday, the firm said "it commenced a voluntary proceeding under Chapter 11 of the US Bankruptcy Code... in order to effectuate a sale of the business" and intended to use the process "to maximise value for its business and assets."
Chapter 11 provides protection against creditors who are owed money.
Virgin Orbit's shares on the New York Stock Exchange were down 3 per cent at 19 cents on Monday evening.
The BBC said that Virgin Orbit, which listed its shares on New York's Nasdaq index in 2021, had debts of $153.5 million in last year.